As per section 13 of Indian Partnership Act,1932, unless contract between the partners specifically stipulates:
Partner not entitled to receive remuneration
A partner is not entitled to receive
remuneration for taking part in the conduct of the business.
Sharing of profit and contribution to
loss
The partners are entitled to share
equally in the profits earned, and shall contribute equally to the losses
sustained by the firm.
Interest on investment only out of
profits
Where a partner is entitled to
interest on the capital subscribed by him, such interest shall be payable only
out of profits.
Interest on investment beyond
liability
A partner making any payment or
advance beyond the amount of capital he has agreed to subscribe, for the purposes
of the business, is entitled to interest thereon at the rate of six per cent.
per annum.
Indemnity for payments made and
liability incurred
The firm to indemnify a partner in
respect of payments made and liabilities incurred by him:
(i) in the ordinary and proper conduct
of the business; and
(ii) in doing such act, in an
emergency, for the purpose of protecting the firm from loss, as would be done
by a person of ordinary prudence, in his own case, under similar circumstances.
Partner to indemnify for loss to firm
by his willful neglect
A partner to indemnify the
firm for any loss caused to it by his willful neglect in the conduct of the
business of the firm.
See section 13 of Indian Partnership Act, 1932 on lawzonline.com